Diller emphasizes that once you learn about an internal issue—be it theft, unethical behavior, or a product flaw—a clock starts ticking. From that exact moment, every action or inaction is your responsibility. This principle establishes a clear line for accountability and demands immediate, decisive leadership.
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To cultivate a culture of high agency, frame ultimate responsibility as a privilege, not a burden. By telling new hires 'everything's your fault now,' you immediately set the expectation that they have control and are empowered to solve problems. This approach attracts and retains individuals who see ownership as an opportunity to make an impact.
True accountability extends beyond your own direct mistakes. Even when someone else is the cause of a problem, hold yourself responsible for having put yourself in that situation. This mindset empowers you to learn from the experience and avoid similar issues in the future by analyzing your choices.
In analyzing a public scandal, Scott Galloway notes that the greatest damage in a crisis typically isn't the initial event but the subsequent "shrapnel": the attempts to cover up, excuse, or avoid accountability. An effective response requires acknowledging the problem, taking responsibility, and overcorrecting.
The most common failure mode for a founder-CEO isn't a lack of competence, but a crisis of confidence. This leads to hesitation on critical decisions, especially firing an underperforming executive. The excuses for delaying are merely symptoms of this confidence gap.
A 'blame and shame' culture develops when all bad outcomes are punished equally, chilling employee reporting. To foster psychological safety, leaders must distinguish between unintentional mistakes (errors) and conscious violations (choices). A just response to each builds a culture where people feel safe admitting failures.
Focusing on "bad to great" is more effective than "good to great" when scaling. Bad behaviors and destructive norms are so corrosive that they make it impossible for excellence to take root. A leader's first job in a turnaround or scaling effort is to eliminate the bad—like dirty bathrooms or incompetent employees—before trying to implement the good.
In a truly product-led company, the product organization must accept ultimate accountability for business-wide challenges. Issues in sales, marketing, or customer success are not separate functional problems; they are reflections of the product's shortcomings, requiring product leaders to take ownership beyond their immediate domain.
Don't be afraid to surface problems to executives, as their job is almost entirely focused on what's not working. Withholding a problem is unhelpful; clarifying and framing it is incredibly valuable. Your champion isn't offending their boss by raising an issue, they're demonstrating strategic awareness.
Our culture equates accountability with punishment. A more powerful form of accountability is making someone a co-owner in solving the root problem. This ensures the issue doesn't recur and is the ultimate form of taking responsibility for one's actions.
When making tough personnel decisions, leaders should frame the choice not as a personal or purely business matter, but as a responsibility to the rest of the organization. Tolerating poor performance at the top jeopardizes the careers and stability of every other employee, making swift action an act of collective protection.
